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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />December 18, 2015 <br />Al Weaver <br />Energy Fuels Coal, Inc. <br />P.O. Box 459 <br />Florence, CO 81226 <br />Re: Southfield Mine (Permit No. C-1981-014) <br />Bond Release Application No. 3 (SL -3) — Adequacy letter <br />Dear Mr. Weaver: <br />The application for SL -03 was deemed complete for the purposes of filing on October 23, 2015, and the <br />bond release inspection of the site was conducted on November 11, 2015. DRMS staff has reviewed your <br />bond release application and the results of the inspection to determine whether the items you have submitted <br />are adequate in terms of meeting the requirements of the Act and Regulations. Comments made by <br />landowners have also been considered. <br />The following adequacy issues were identified by DBMS staff and need to be addressed by Energy Fuels <br />(EFCI). <br />From general review of application <br />On page 5, the paragraph on Phase I bond release has an error. It states, "It also requests a Phase <br />II and Phase III release of the aforementioned Phase I areas ..." This is not entirely accurate as <br />the application only asks for Phase I for the substation. <br />The Monarch Fan road is shown as an area of interest on the bond release map (Appendix E), but <br />it is not discussed. <br />Page 2 of Appendix D refers to Attachment 1, but this appears to be missing from the application. <br />Please provide this. A relate question: how does EFCI explain the fact that the LS factors for the <br />reclaimed areas and the non -mined areas are identical? <br />Page 3 of Appendix D has two tables with cover values, and the source of these values are the <br />vegetation data in Appendices G and H. In the table for reclaimed areas, the 2014 Vento value <br />appears to be an error: from the vegetation data, it appears this value should be 75.47, not 65.47. <br />Appendix E: On the bond release map for the mine site, the disturbance associated with the <br />Corley Mine Well is not shown as an area of interest for this application. <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />